Want to learn the best business insights from remarkable speakers at Slush 2023, but don’t have the time to watch the full speeches on YouTube?
You’ve come to the right place. Below is a summary of a speech by Lubomila Jordanova, the Co-Founder & CEO of Plan A.
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<p class="h1-rich">🤏 TL;DR</p>
TL;DR: The meeting discussed the importance of pricing and value for a product, and the factors affecting margins and revenue. Lessons for startup founders included focusing on selling value rather than features, breaking the rules to define their own reality in the market, understanding and improving the user experience, considering climate impact and sustainability, and using anchor pricing as a reference point. The action items included validating the value of the product, focusing on selling value, breaking the rules, and understanding and improving the user experience.
<p class="h1-rich">✨ Summary</p>
The Importance of Pricing and Value
- Pricing a product, such as a t-shirt, can be challenging as it involves determining its value.
- There are various pricing models, including freemium, retainer, and per-feature pricing.
- The goal is to find a pricing strategy that justifies the efforts put into the product and appeals to customers.
Factors Affecting Margins and Revenue
- The success of a product depends on its sales, discounts, and revenue generation.
- The margins and revenue can be influenced by factors such as pricing strategies, client satisfaction, and market demand.
- Companies need to consider the costs associated with production, marketing, and distribution when determining margins.
Lessons for Startup Founders
1. Sell Value, Not Features
- Startup founders should focus on solving problems for clients rather than simply highlighting product features.
- Clients are more likely to invest in a product that offers value and addresses their specific needs.
- Validating the value of a product with data points is crucial before expecting clients to pay for it.
2. Break the Rules and Define Your Industry
- Startups have the opportunity to redefine industries and create new markets.
- Founders should be willing to challenge existing norms and educate potential clients about the value they bring.
- It's important to identify the right partners and investors who understand and support the vision.
3. Understand the User Experience and Fix Issues
- Startups should continuously evaluate the user experience of their product and address any issues or shortcomings.
- Customer satisfaction plays a significant role in determining pricing and retaining clients.
- Investing time and resources into improving the user experience can lead to higher margins and revenue.
4. Consider the Climate Impact and Sustainability
- Climate change and sustainability are becoming increasingly important considerations for businesses.
- Companies need to account for the environmental impact of their products and operations.
- Understanding the costs associated with climate risks and promoting sustainability can contribute to long-term success.
5. Use Anchor Pricing as a Reference Point
- Anchoring pricing helps clients establish a reference point for the value of a product.
- It allows startups to position their product in the minds of clients and justify its price.
- Having a clear pricing strategy based on value helps build trust and attract customers.